TaxTMI 
TaxTMI 
2012 (10) TMI 723
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....ed registration with the department under the category of "Air Travel Agent" Service. The appellant were involved in booking of air tickets for their customers. In providing the service of air travel ticket booking, the appellant used central "Computer Reservation Systems" (CRS) software supplied by M/s. Amedeus Systems. The investigation conducted by this Department revealed that the appellant as Air travel agents have been receiving incentive/commission from CRS developers and it appeared that this incentive/commission received is taxable with effect from 1-7-2003 under the category of "Business Auxiliary Service". As it appeared that the appellant had not discharged the Service tax liability on the above said incentive received, the appe....
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....ipient. In this case Amadeus has provided the software and they had received the software. (iii) that it is a bald allegation by the Department that they are promoting the Amadeus System for which incentives were paid by them. The onus is on the department to prove with documentary evidences that they had rendered taxable service, which is absent in this case, which has not been done in this case. (iv) that here Amadeus India is the service provider and they are the service recipients. The service tax if any has to be paid by the Service provider, if such services are provided in India. In this case, the liability if any it has to be only on M/s. Amadeus India Pvt. Ltd. and not on them. Even Amadeus is not liable t....
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....ems whose software has been used by his client for booking air tickets, as there was no provider and receiver relationship. Shri. R. Jayasankar, Superintendent, represented the respondent Department. 5. I have carefully gone through the records of the case and the submissions made. The issues to be decided in the instant case are that whether - (i) the demand is hit by limitation of time as claimed by the appellant and (ii) the appellant is liable to pay service tax on the value of incentives received by them from M/s. Amedeus Systems under "Business Auxiliary Service" for the continuous usage of software provided by M/s. Amadeus. 5.1 I find from the records that the disputed per....
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.... the records that the appellant was issued with show cause notice for non-payment of service tax on the incentive received from M/s. Amedeus Systems for continued usage and patronage of the software developed by M/s. Amedeus Systems. The appellant's main contention is that there is no service provider and service receiver relationship between M/s. Amadeus and them. M/s. Amadeus Systems had provided software free of cost and the appellant had used it for booking air tickets. The incentive was paid by M/s. Amadeus for continued usage of the software provided by them. But the Department had alleged that the appellant by continued usage of the software are providing service by promoting the business of Amadeus Systems. Hence, they are liable to....
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....n fact the lower authority in the Order-in-Original dated 27-2-2005 has observed ''there is no dispute that the cash discount and incentives are not received by the assessee in relation to the service provided by them to their clients." We are surprised that after making such observations the authority has chosen to confirm the demand. In view of the above findings, the impugned Order-in-Appeal confirming the Order-in-Original does not have merit. We set aside the impugned order and allow the appeal with consequential relief." 5.3 The above case law is equally applicable to the issue in hand. In the instant case the appellant had used the software developed by M/s. Amadeus India Pvt. Ltd. for booking air tickets to the customers. For ....